These SAP Tutorials will focus on understanding the overview of Third Party Sales in SAP. In third-party sales, the company transfers the sales order to a third-party vendor. The vendor or supplier delivers the goods directly to the customer or end-users and invoices the ordering company. The customer shall receive an invoice from the sales office of the company.
Table of Contents
What is Third party sales in SAP SD?
While procuring third-party sales in SAP, the company forwarded a customer order to a third-party supplier who delivered the products to the customer and then billed the client. A purchase requisition is automatically produced and sent to the buying department if a third-party order is saved. The procurement department then produces a third-party purchasing order to demonstrate that all products will be shipped directly to the company. The retailer provides the consumer with the goods and pays the client for them. Upon reviewing the invoice receipt, the company then charges the customer for the products delivered by the retailer.
Process Flow for Third-Party Sales Process in SAP
Third-party sales configuration in SAP SD
Third-party orders are handled by material categories that decide whether the products are only manufactured in-house, are available only from third-party suppliers, or if both are necessary.
When one or more third-party vendors also submit material, the material will be kept as a third-party item. In the Sales 2 screen of the material master, record BANS is entered in the item category group area. When processing the material in order, the program decides the object category as TAS
For the material that is supplied but also from a third-party supplier, during the sales order processing, the product class of the item is adjusted from TAN to TAS.
Sales -Item Category
The TAS Item category is applicable to order-related billing and the amount of the items obtained.
Item categories assignment
Sales -Order Schedule Line Category
The system shall determine the standard schedule Line – CS. The schedule line is not relevant to any movement of goods, as the issue of physical goods does not arise from the business.
The Standard Purchase Requirement – NB, Third Party Item Category – 5, and Third Party Account Assignment Category – 1 are configured to allow the system to create a purchase request for the Schedule Line automatically.
Sales- Order Creation
Third-party items are processed through the creation of a normal sales order. The system uses TAS as a standard third-party item category. A sales order may consist in part or in whole of third-party items.
Third-Party Sales –Purchase Requisition
The purchase request is automatically created when the purchase order is saved. Each third-party item in the sales order automatically generates the corresponding purchase requisition item. If a third-party order item has more than one schedule line, the system will create a purchase requisition item for each schedule line.
Purchase requisition items can be viewed from the schedule line of the sales order
Third Party Sales –Purchase Order
A purchase order shall be issued with reference to the purchase request. The system automatically adjusts the recipient’s delivery address from the order of sale. Third-party order items in the purchase order are marked with item category ‘S.’ Any quantity and date changes made in the purchase order are automatically copied into the order of purchase.
Third Party Sales –Billing
Once the goods have been delivered to the customer by the seller, the company then invoices the customer. There is no delivery in the system for third-party order items. The system is set up for order-related billing while selecting the documents to be billed.
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